Advanced Merger Modeling
This hands-on advanced course focuses on the skills required to design and create a powerful model to analyze the impact of a merger or acquisition.
Participants will be asked to incorporate several additional components into an existing merger model, including various break-even points, cash flow impact and forecasted summary balance sheets.
Skills / Knowledge
- Review the various assumptions required to prepare a merger model
- Identify potential synergies and incorporate them into the mode
- Use various forms of consideration in an acquisition
- Calculate the impact of mergers and acquisitions on a buyer’s financial statements
- Review and incorporate various checks to make sure the model is working properly
- Incorporate powerful Excel tools to sensitize the outputs
- Create summary analysis to synthesize and display important information
- Understand various break-even points in the merger model
- Analyze the accretion / dilution using a “like-for-like” capital structure to identify the cause of the accretion / dilution
- Modify the merger model to incorporate a target capital structure on the closing date of the transaction
- Analyze the impact of an acquisition on the acquirer’s cash flows, including whether the acquirer can maintain its dividend following the acquisition
- Incorporate forecasted pro forma balance sheets into the model
- Understand the tax implications of buying shares vs. buying assets, including how this impacts the buyer’s financial statements over time